Bandhan appoints Deloitte as adviser

A STAFF REPORTER

Ghosh: Step ahead

Calcutta, May 14: Microfinance firm Bandhan Financial Services, which has obtained a banking licence from the Reserve Bank, has appointed consulting firm Deloitte to help it to make the transition from microfinance operations to mainstream banking.

“We have signed an agreement with Deloitte today seeking their advisory support for starting banking operations,” said Chandra Sekhar Ghosh, chairman and managing director of Bandhan.

He said Deloitte would be working closely with an internal team of 30 members of Bandhan to facilitate the transition.

“Their primary objective will be to set up the bank model. There are various regulatory requirements besides legal, tax and technology-related issues that will be looked into,” said Ghosh.

Deloitte was selected from among other consulting firms such as McKinsey, Ernst & Young, BCG and KPMG. Bandhan had earlier sought the help of Deloitte to prepare a blueprint for a banking licence.

The Calcutta-based microlender was awarded the licence by the Reserve Bank of India in April.

“Deloitte has helped us in our bank application and has been working with us over the last one year. We have appointed Deloitte as our adviser for this phase as well to help us in setting up the bank,” Ghosh said.

Bandhan will require Deloitte’s expertise in forming the corporate structure along with an appropriate shareholding pattern, according to the RBI guidelines.

Besides, Bandhan will have to meet the capital adequacy requirements and roll out its business in the unbanked rural regions.